Re: Currency question
By david_z in Economics Questions
Todd Marshall:
Now you’ve got $9,500 to do all your trading. Is that enough? If it is, you need to beef up your savings a little bit (remember they would have to be backed up by gold even though they’re not involved in trade and you don’t want to allow them to be loaned, let alone margined, lest you want that gold right now.)
Stop thinking of $9,500 in terms of today’s purchasing power equivalent (i.e., 10 oz. gold?)
If 10 oz. could buy you a McLaren F1, would you still be asking this question? What if 10oz. could buy you a Manhattan city block? You’re neglecting half of the equation…
Child, please. I know exactly what I said. What I did not say was “Let’s make the price of gold $X instead of $950/oz.”
Nor am I proposing that we wake up tomorrow and arbitrarily define the price of gold - any more than I’d propose that we arbitrarily define the price of any other product in the market. The position is that, absent the “price diddling” we would’ve evolved accustomed to an entirely different array of “prices” in nominal terms.
Leave him alone. He is just trying to win converts. He doesn’t want to learn anything. Ignore the post let it end up in the graveyard. Let him read them, then come back and discuss.
I think DZ is just ticked that Todd is misrepresenting him. But the issue obviously is that Todd is completely ecognorant and isn’t capable of making a sound argument in this debate.
When he said he didn’t care why people act, that was synonymous with saying he doesn’t care about markets. Which makes it pointless to discuss free market or AE with him. He’s talking about some personal fantasy he has been posting online since 2006. No one is going to dissaude him of it with reason, because his idea is not rooted in reason.
Yes, he built an army of strawmen around my position early on. He doesn’t even have the OP correct. Well I’m done with this thread now. Thanks for pointing it out.
